From nutrient-dense bakery products to indulgent nostalgia-led treats, Marks & Spencer has built a reputation for launching products that generate headlines, social media attention and, crucially, repeat purchases.

But the real lesson for manufacturers is not about copying M&S. It is about understanding the innovation principles that sit behind its success – principles that can be applied across bakery, confectionery, dairy, beverages, snacks and prepared foods.

That is the view of Deirdre Walters and Sally Kemkers, founding partners of Untapped Innovation, a global consultancy helping R&D teams at companies including PepsiCo, P&G, Unilever and Reckitt create breakthrough products and compelling product stories.

Together with fellow founding partner Suzanne Allers, they have distilled their approach in their new book, Untapping Innovation: An R&D Playbook for Products and Stories to Sell (Practical Inspiration Publishing), which explores how businesses can transform deep consumer insight into faster innovation, better product decisions and stronger commercial success.

Against that backdrop, the recent success of Marks & Spencer provides a useful case study — not because its products should be copied, but because they demonstrate innovation principles that manufacturers of every size can apply.

Every few months, another Marks & Spencer product seems to dominate supermarket conversations. Whether it is an indulgent bakery launch, a health-focused ready meal or a premium seasonal product, the retailer has become remarkably adept at creating launches that capture consumer attention while delivering strong commercial performance.

It would be easy to dismiss this as simply another example of a retailer with deep pockets and sophisticated product development teams. According to Untapped Innovation, however, that would miss the point entirely.

The real story is not about one retailer. It is about a shift in how successful manufacturers are approaching innovation itself.

Rather than beginning with ingredients, processing technologies or packaging concepts, leading businesses are increasingly starting with the consumer — and designing products around what people are actually trying to achieve in particular moments of their lives.

For manufacturers competing in increasingly crowded markets, this represents a significant change in thinking.

Innovation begins with people, not products

One of the most common mistakes manufacturers continue to make is beginning with a new technology or ingredient before identifying the problem it solves.

Sally Kemkers believes virtually every manufacturer can adopt the principles behind M&S’s approach.

“Any manufacturer can replicate this approach,” she says. “They need to define their target consumer and deeply understand their pain points and needs. They need to stay on top of cultural trends and be skilled at using emergent category and cross-category cues to inspire new product ideas.”

That requires much closer collaboration with consumers throughout development.

Rather than relying solely on traditional market research, leading manufacturers are increasingly co-creating products with consumers to refine everything from formulation and texture to packaging and appearance before launch.

Reading cultural signals

Deirdre Walters argues that M&S’s strongest launches demonstrate an ability to interpret broader cultural movements rather than simply respond to short-term food trends.

She points to two very different examples.

The retailer’s nutrient-dense range reflects growing consumer interest in whole foods and better nutrition, influenced partly by changing attitudes towards weight management and healthier eating.

Meanwhile, indulgent bakery products featuring nostalgic formats appeal to consumers seeking familiarity and comfort during uncertain economic conditions.

“These examples suggest M&S has a genuine finger on the pulse, anticipating a range of emotional and nutritional drivers behind deep consumer needs,” Walters explains.

The lesson extends well beyond retail own-label.

Whether producing yogurt, confectionery, chilled meals or beverages, manufacturers increasingly need to understand the emotional and cultural context surrounding consumption — not simply flavour preferences.

Five trends reshaping every food category

Untapped Innovation identifies several themes now influencing innovation across virtually every food sector.

The first is the shift from products designed around taste to products designed around occasions.

Consumers increasingly purchase food to fulfil emotional needs such as comfort, reward, celebration or relaxation rather than hunger alone.

Products that successfully combine functional performance with emotional relevance consistently outperform those delivering only one benefit.

Secondly, premiumisation has become democratised.

Consumers may postpone expensive purchases, but many still seek affordable everyday indulgences.

Whether that means an elevated biscuit, premium coffee, artisan dairy product or gourmet ready meal, manufacturers have opportunities to create products that feel like accessible luxuries.

Thirdly comes what the consultancy describes as “familiar plus unexpected”.

Rather than introducing entirely new concepts, many successful launches build upon products consumers already recognise while introducing a single compelling twist.

This reduces perceived risk while still offering novelty.

For manufacturers, incremental creativity often delivers greater commercial success than radical disruption.

The rise of multi-sensory innovation

Texture, appearance, aroma and even sound are becoming increasingly important differentiators.

Consumers are now exposed to an unprecedented variety of global food experiences through social media, travel and premium retail.

As a result, expectations have risen dramatically.

“Flavour alone is no longer sufficient to justify a premium price point,” the consultancy notes.

This has significant implications for manufacturers across categories.

Snack producers are experimenting with contrasting textures.

Bakery manufacturers are emphasising visible fillings and layered products.

Dairy companies are focusing on creaminess and mouthfeel.

Beverage brands are exploring texture, aroma and drinking rituals alongside flavour.

Innovation increasingly involves engineering complete sensory experiences rather than simply developing new recipes.

Virality gets attention — but repeat purchase builds businesses

Social media remains a powerful launch platform, but online popularity alone is no guarantee of commercial success.

Kemkers and Walters argue that while viral content may encourage first purchase, sustained growth depends upon delivering exceptional product experiences.

Products that disappoint after consumers open the packaging rarely achieve lasting success regardless of online hype.

For manufacturers investing heavily in influencer campaigns and digital marketing, this reinforces an important principle.

Marketing may generate trial.

Only product quality creates loyalty.

Consumer insight has fundamentally changed

Perhaps the biggest transformation affecting innovation teams lies in how consumer understanding is gathered.

Traditional research programmes are increasingly being complemented by continuous observation.

Manufacturers are monitoring social media discussions, analysing online reviews, participating in consumer communities and using AI tools to detect emerging behavioural signals much earlier than previously possible.

Equally important is the growing adoption of the “Jobs To Be Done” framework.

Rather than segmenting consumers purely by age or income, product teams increasingly ask what consumers are trying to accomplish when choosing a product.

Is someone buying an energy drink for physical performance, mental focus or simply an afternoon pick-me-up?

Is a dessert purchased as personal indulgence or family celebration?

Answering those questions provides R&D teams with significantly stronger development briefs than demographic profiling alone.

AI accelerates — but doesn’t replace innovation

Artificial intelligence has undoubtedly transformed product development.

Today’s tools can analyse millions of product reviews, consumer conversations, research papers and market reports within hours rather than months.

That enables businesses to identify trends far earlier than traditional research methods.

Yet Kemkers and Walters caution against assuming AI alone can produce breakthrough innovation.

Some of the most valuable insights still emerge through observation rather than data.

Small frustrations, unexpected workarounds and unspoken consumer behaviours often reveal opportunities that algorithms cannot yet fully understand.

Successful manufacturers therefore combine AI’s speed and analytical capability with human interpretation, qualitative research and sensory testing throughout development.

Packaging and formulation must tell the same story

For many manufacturers, packaging development and formulation remain separate workstreams.

Untapped Innovation argues this increasingly creates commercial risk.

Consumers expect consistency between what packaging promises and what the eating experience delivers.

Premium packaging paired with mediocre formulation — or outstanding products hidden inside uninspiring packaging — creates immediate disconnect.

“The best products create a seamless experience where the packaging sets the stage and the formulation delivers on that promise,” the consultancy explains.

The balance naturally varies by category.

Luxury confectionery requires packaging that communicates giftworthiness and anticipation.

Everyday staples demand functionality, sustainability and clarity.

Either way, both elements should be designed together rather than sequentially.

A competitive advantage for SMEs

Perhaps surprisingly, many of these innovation principles favour smaller businesses.

Without the complexity of large corporate structures, SMEs can often move faster, engage directly with customers and test concepts through limited launches before committing significant investment.

Kemkers recommends using AI tools, online reviews and direct customer conversations to identify unmet needs before investing heavily in development.

Rather than chasing broad appeal, challenger brands often succeed by solving one consumer problem exceptionally well.

Innovation is becoming more human

Across every food category, the most successful innovators increasingly share one characteristic.

They no longer define innovation by ingredients, flavours or technologies alone.

Instead, they begin by understanding people.

That may explain why companies such as M&S continue to produce products that resonate so strongly with consumers.

The retailer’s launches are not simply well executed — they are carefully designed around emotional needs, sensory expectations and specific consumption occasions.

For manufacturers across bakery, dairy, snacks, beverages, confectionery and prepared foods, that may be the most valuable innovation lesson of all.

In today’s market, breakthrough products are less likely to emerge from asking, “What can we make?” and more likely to come from asking, “What does our consumer need this product to do?”